It could take until the fall for East Stroudsburg University's Keystone Center to receive the approval needed for the project to move forward.

CHRISTINA TATU

It could take until the fall for East Stroudsburg University's Keystone Center to receive the approval needed for the project to move forward.

Lancaster-based attorney Josele Cleary, who was appointed to render a decision on a conditional use application, expects to make a decision by Sept. 22.

The East Stroudsburg Borough Council hired Cleary as an independent hearing officer since she's familiar with requirements and procedures regarding state system projects.

A hearing Wednesday revealed several issues still to be resolved.

The state Department of General Services is overseeing construction of the Keystone Center.

That includes construction of the building itself, clarified department attorney David Narkiewicz.

"We will not be on the hook for any parking or road improvements" necessitated by construction of the building, Narkiewicz said.

That portion of the project will be up to ESU officials to finance.

ESU has already agreed to pay for 65 percent of the cost of removing the channelized island at Smith and East Brown streets and installing a traffic signal.

It has also agreed to entirely finance the installation of a 115-foot right turn at the intersection of Prospect and Normal streets.

It's not yet clear how much those projects will cost.

In addition, it is also recommended a 350-foot right-turn lane be constructed along northbound Prospect Street, but university officials hope that part of the project will be included in a Pennsylvania Department of Transportation plan to improve the Exit 308 interchange.

ESU officials will also have to prove their current parking management plan, drafted in 2010, with the construction of the new Hawthorn and Hemlock suites, will be sufficient to support the Keystone Center.

Because ESU is solely responsible for parking and road improvements, it must now submit a separate conditional use application specifically relating to those items.

ESU officials are in the process of filing that application, and Cleary will hold a separate hearing for the parking and road improvements on July 15.

Originally, there was only one conditional use application on file, submitted by the DGS.

ESU officials also need to prove they can pay for the improvements, Cleary said.

"Someone has to be able to say, 'I have the authority to spend the money so that the parking complies with the borough's zoning requirements.' Who has the ability to make a binding commitment?" Cleary asked.

ESU officials Wednesday said they will present legal support at the July 15 meeting showing they can make the commitment.

The $107 million Keystone Center will consist of two phases.

The first includes demolishing the existing Keystone Room and hotel, restaurant and tourism buildings and constructing a new four-story student center.

The second phase includes demolishing the old student and computing centers and constructing a five-story library.

To date, the state has released $72 million toward the project — just enough money for Phase I.

The plans submitted by ESU don't distinguish between Phases I and II, Cleary said.

Cleary questioned what will become of the project if money for the second phase does not come through.

She questioned whether the old student and computing centers will still be demolished if that money is delayed.

There is not supposed to be any lapse between the two phases, said ESU Vice President of Finance and Administration Ken Long.

"There has to be a plan in case there is no Phase II," Cleary said.

ESU officials are expected to provide a plan at the July 15 hearing.

"The current plans don't call for a lag, but that's subject to when funding is released," Long said. "The money has been earmarked by the state, it just hasn't been released yet."

Long said ESU officials will have a better idea of when the entire project will be finished once they receive final approval to commence with Phase I.

"Every day we wait on this project, it costs us more money," Long said, referring to increasing construction costs.

Last year, ESU officials anticipated the new student center would be ready for occupancy by June 2016.

Officials also estimated that if the state releases the remaining money by October, the second phase of the project could be finished by April 2018 and ready for occupancy in June 2018.